Core Viewpoint - The company, Zhengtong Automobile, anticipates a significant increase in net losses for the six months ending June 30, 2025, primarily due to the intensifying price war in the automotive market and macroeconomic factors [1] Group 1: Financial Impact - The expected net loss for the company will increase by approximately 40% compared to the same period last year [1] - The increase in net loss is attributed to declining new car prices, impairment of goodwill and intangible assets, and impairment of fixed assets [1] Group 2: Strategic Support - The company is supported by its controlling shareholder, Xiamen Guomao Holding Group Co., Ltd., which has a long-term strategic commitment to the company [1] - The board believes that the company can adapt to industry changes and continue its operational development based on the assessment of its unaudited consolidated management accounts for the six months ending June 30, 2025 [1]

Group 1 - The core viewpoint of the article highlights that Zhengtong Automobile (01728) is facing significant challenges due to an intensifying price war in the automotive market and macroeconomic factors, leading to an expected increase in net losses by approximately 40% for the six months ending June 30, 2025, compared to the same period last year [1] - The increase in net losses is primarily attributed to declining new car prices, impairment of goodwill and intangible assets, as well as fixed asset impairments [1] - The company’s board believes that, with the long-term strategic support from its controlling shareholder, Xiamen Guomao Holdings Group Co., Ltd., the company can adapt to industry changes and continue its operational development [1]

Core Viewpoint - The company, Zhengtong Automobile, anticipates a significant increase in net losses for the six months ending June 30, 2025, primarily due to intensified price competition in the automotive market and adverse macroeconomic factors [1] Financial Performance - The company expects net losses to increase by approximately 40% compared to the same period last year [1] - The increase in net losses is attributed to declining new car prices, impairment of goodwill and intangible assets, and impairment of fixed assets [1] Market Conditions - The automotive market is experiencing a price war, which is impacting the company's financial performance [1] - Macroeconomic factors are also contributing to the challenges faced by the company [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China ZhengTong Auto Services Holdings Limited 中國正通汽車服務控股有限公司 （根據開曼群島法律註冊成立的有限公司） （股份代號：1728） 盈利警告 本公告乃由中國正通汽車服務控股有限公司（「本公司」，連同其附屬公司統稱「本集 團」）根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09(2)條及證券 及期貨條例（香港法例第571章）第XIVA部之內幕消息條文（定義見上市規則）而作 出。 本公司董事（「董事」）會（「董事會」）謹此知會本公司股東及潛在投資者，根據對本集 團截至2025年6月30日止六個月的未經審核綜合管理賬目及董事會現時可得之資料 而作出的初步評估，由於受到愈演愈烈的汽車市場價格戰以及宏觀經濟因素的影 響，本集團針對若干目前表現欠佳4S門店商譽和╱或無形資產 — 汽車經銷權╱經 銷商經營權和計劃轉型的4S門店房屋及裝修等固定資產 ...

Core Viewpoint - Zhengtong Automobile (01728.HK) has announced a board meeting scheduled for August 28, 2025, to consider and approve the interim results for the six months ending June 30, 2025, and to discuss the potential payment of an interim dividend, among other matters [1] Summary by Relevant Sections - **Company Performance** - The board meeting will address the interim performance results for the first half of 2025 [1] - **Dividend Consideration** - The company will consider the payment of an interim dividend during the board meeting [1] - **Other Matters** - Additional matters will also be discussed during the board meeting [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 China ZhengTong Auto Services Holdings Limited 中國正通汽車服務控股有限公司 （根據開曼群島法律註冊成立的有限公司） （股份代號：1728） 董事會召開日期 中國正通汽車服務控股有限公司（「本公司」）董事會（「董事會」）茲通告謹定於2025年 8月28日（星期四）舉行董事會會議，以（其中包括）考慮及批准本公司及其附屬公司 截至2025年6月30日止六個月之中期業績及其發佈，考慮派付中期股息（如有），以 及處理其他事項。 承董事會命 中國正通汽車服務控股有限公司 主席 黃俊鋒 香港，2025年8月18日 於本公告日期，董事會包括執行董事黃俊鋒先生（主席）、王明成先生、蘇毅先生、 莊智博先生及吳曉強先生；以及獨立非執行董事徐尉玲博士、沈進軍先生及于建榕 女士。 ...

Group 1: Economic and Industry Developments - The National Bureau of Statistics reported that as of June 2023, China has built over 35,000 high-quality data sets, totaling over 400PB, with plans to accelerate the development of key areas such as embodied intelligence, low-altitude economy, and biomanufacturing [1] - Hainan Province has introduced policies to support the high-quality development of the biopharmaceutical industry, including funding rewards ranging from 400,000 to 10 million yuan for various stages of product development [2] - Guizhou Province has launched a three-year action plan for the low-altitude economy, aiming for significant development by 2027, including infrastructure completion and the establishment of innovative platforms [3] Group 2: Company Financial Performance - JD Group reported a revenue of 356.7 billion yuan for Q2, a year-on-year increase of 22.4%, but incurred an operating loss of 900 million yuan due to increased strategic investments [5] - China Telecom's revenue for the first half of the year was 269.4 billion yuan, a 1.3% increase year-on-year, with a net profit of 23.02 billion yuan, up 5.5% [5] - NetEase reported Q2 revenue of 27.9 billion yuan, a 9.4% increase, with a net profit of 8.6 billion yuan [5] Group 3: Corporate Actions and Market Movements - China Heavy Industries announced the voluntary termination of its A-share listing as part of a merger with China Shipbuilding, which has been approved by the China Securities Regulatory Commission [7] - Tianpu Co. announced a potential change in control, leading to a temporary suspension of its stock trading [6] - Giant Power announced plans to invest 100 million yuan to establish a wholly-owned subsidiary focused on marine technology, aiming to enhance sustainable development capabilities [8] Group 4: Market Trends and Recommendations - Research from Galaxy Securities suggests focusing on the AI sector, particularly on core areas such as domestic computing power, high-end chips, and AI application leaders in various industries [9] - CITIC Securities highlights the ongoing growth in the computing power sector driven by AI, recommending companies with sustained high growth and those benefiting from external demand [9]

Group 1: Company Performance - China Telecom reported a revenue of 269.42 billion yuan for the first half of the year, a year-on-year increase of 1.3% [2] - The net profit attributable to shareholders was 23.02 billion yuan, up 5.53% year-on-year, with basic earnings per share of 0.25 yuan [2] - The company plans to distribute an interim cash dividend of 0.1812 yuan per share (including tax) [2] Group 2: Industry Trends - The National Development and Reform Commission is preparing the "14th Five-Year" marine economy development plan, emphasizing innovation-driven growth and the development of emerging industries such as offshore wind power and marine biomedicine [5][6] - The marine economy is projected to exceed 10 trillion yuan in production value by 2024, doubling since 2012 [6] - The marine communication sector is identified as a crucial infrastructure for the marine economy, supporting the future 6G integrated network [6] Group 3: Stock Market Activity - Several deep-sea technology concept stocks saw significant inflows, with Jili Rigging's stock price hitting the daily limit, attracting a net inflow of 484 million yuan, the highest in over eight years [7] - Weichai Heavy Industry's stock has increased by 185.25% year-to-date, leading among concept stocks [7] - China Shipbuilding's net profit is projected to be between 2.8 billion and 3.1 billion yuan for the first half of the year, reflecting a year-on-year increase of 98.25% to 119.49% [9]

Core Viewpoint - The article highlights the contrasting experiences of individual car salespeople who can earn high incomes from selling popular new models, while traditional dealerships face significant financial challenges and a wave of closures due to declining profitability and market pressures [9][16][32]. Group 1: Sales Performance and Challenges - In late 2023, the launch of the AITO M9 saw salespeople achieving remarkable sales figures, with one salesperson selling 28 units in a month [6][8]. - Despite the potential for high earnings, the reality for many salespeople is marked by intense work pressure and high turnover rates, as many leave due to the demanding nature of the job [12][15]. - The sales environment is increasingly competitive, with new models from various brands entering the market, yet many salespeople report low sales during off-peak months [10][13]. Group 2: Dealership Financial Struggles - The China Automobile Dealers Association predicts that over 4,400 dealerships will close in 2024, with a loss rate among dealers reaching 41.7% [9][17]. - Price inversion affects 84.4% of dealerships, with over 60.4% experiencing a price drop exceeding 15% [17][18]. - Major dealership groups like Zhongsheng Holdings and Yongda Automotive are experiencing significant declines in new car sales and profitability, with some reporting net profit drops of over 80% [19][20]. Group 3: After-Sales Service as a Revenue Stream - After-sales services are becoming a crucial revenue source for traditional dealerships, with Zhongsheng Holdings reporting a 9.6% increase in after-sales revenue in 2024 [25][26]. - The focus on after-sales services is seen as a potential lifeline for dealerships struggling with new car sales [25][32]. Group 4: Industry Transformation and Future Outlook - The article discusses the need for dealerships to adapt to changing market conditions, emphasizing collaboration with manufacturers and a shift towards after-sales and user engagement strategies [32]. - The success of individual salespeople and mid-sized dealerships in the new energy vehicle market illustrates the potential for growth and adaptation within the industry [30][32]. - The ongoing transformation in the automotive industry highlights the importance of flexibility and innovation for both dealerships and sales personnel to thrive in a competitive landscape [32].

Core Insights - The automotive sales industry in China is experiencing a significant divide between individual salespeople benefiting from high commissions on popular new models and traditional dealerships facing severe financial losses and network reductions [3][10][23] - The introduction of new electric vehicle models is seen as a potential lifeline for struggling dealerships, but the ongoing price wars and channel transformation pressures may exacerbate the existing challenges [3][10][23] Group 1: Sales Performance and Challenges - Individual salespeople have reported high earnings during the launch of popular models, with some achieving monthly incomes of 30,000 to 40,000 yuan [4][6] - However, the high earnings come with extreme work intensity and high turnover rates among sales staff, indicating a challenging work environment [6][9][23] - The automotive sales sector is witnessing a significant number of dealership closures, with over 4,400 4S stores expected to exit the market in 2024, reflecting a 41.7% loss rate among dealers [10][11] Group 2: Financial Performance of Dealerships - Major dealership groups are reporting declining new car sales and revenues, with companies like Zhongsheng Holdings and Yongda Automotive experiencing significant drops in both sales volume and profit margins [11][12] - The overall profitability of traditional dealerships is under pressure, with many reporting negative gross margins on new car sales, leading to a shift in focus towards after-sales services as a key revenue source [15][16] - The after-sales business has shown growth, with Zhongsheng Holdings reporting a 9.6% increase in after-sales revenue, highlighting a potential area for profitability amidst declining new car sales [15][16] Group 3: Industry Transformation and Future Outlook - The automotive industry is undergoing a transformation, with traditional dealerships needing to adapt to new market realities, including the rise of electric vehicles and changing consumer preferences [23] - Collaboration between manufacturers and dealerships is emphasized as a necessary strategy for survival, with calls for more flexible arrangements and support from manufacturers to help dealers navigate the current challenges [23] - The success of individual salespeople and mid-sized dealerships in the electric vehicle market suggests that there are opportunities for growth and adaptation, provided that stakeholders can work together effectively [23]